Puig and its founding family plan to sell Class B shares at €22 to €24.50 each, the Barcelona-based company said Thursday in a filing with the Spanish securities regulator.

Puig, whose brands include Jean Paul Gaultier, Rabanne and Carolina Herrera, would have a market value of as much as €13.9 billion after the offering, according to terms seen by Bloomberg.

Puig will sell enough new shares to generate €1.25 billion in proceeds, while the Puig family is offering stock to raise €1.36 billion. The number of shares will be determined by the final price of the IPO.

In dollar terms, the listing surpasses Galderma Group AG’s 2.3 billion Swiss-franc ($2.6 billion) sale last month as Europe’s largest so far this year.

If successful, Puig’s offering is expected to pave the way for more listings. Companies have announced $7.5 billion of IPOs this year in Europe, up 88 percent from the same period last year.

Yet stock market debuts have been mixed recently. Galderma shares have soared since the skincare company listed, while German perfume retailer Douglas AG has tumbled.

Puig’s listing will be watched closely by Spanish candidates to float such as clothing retailer Tendam and Hotelbeds, which reportedly delayed its IPO until after the summer. Elsewhere in Europe, private equity firm CVC Capital Partners plans an offering in Amsterdam.

Family Business

Puig was founded as a perfume company in 1914 by Antonio Puig. The bulk of its growth over the 20th century came from the distribution of well-known foreign goods by firms like Max Factor, and the production of perfumes under license for other brands.

Puig has focused in recent years on niche brands by buying L’Artisan Parfumeur, Penhaligon’s and Byredo, and launching designer Dries Van Noten’s perfume line. It also owns beauty brand Charlotte Tilbury.

The company is still led by the third generation of the founding family. Marc Puig Guasch is chairman and chief executive officer, while his cousin Manuel Puig Rocha is vice chairman. The family will maintain a majority stake and hold “the vast majority of the voting rights,” Puig said April 8.

Puig’s revenue rose 19 percent last year to €4.3 billion, with its makeup business — albeit much smaller than fragrances and fashion — up 23 percent. The company’s profit margin increased to 20 percent last year from 17.7 percent in 2021.

Still, the IPO comes amid signs from competitors that consumer demand for beauty products is cooling. Shares of Ulta Beauty Inc. on April 3 tumbled the most since March 2020 after executives signalled demand was slowing, weighing on the shares of peers as well.

The share sale begins Friday and will run through April 30, with the first day of trading set for May 3 on the Madrid Stock Exchange under the symbol PUIG, according to the terms. Puig announced its intention to list, including the amount the company planned to raise, on April 8.

Goldman Sachs Group Inc. and JPMorgan Chase & Co. are leading the IPO, with Bank of America Corp., BNP Paribas SA, CaixaBank SA and Banco Santander SA as joint bookrunners.

By Clara Hernanz Lizarraga

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